The Sarasota Real Estate Market experienced a solid increase in sales activity in May when compared to prior year. The single-family home segment carried the majority of the growth, where there was a 17% increase in closings of all price points and more than 26% more transactions over $1 million. In addition, total sales volume grew 26.3% and prices also saw above average appreciation. As has been the case for the last several months, the condominium sector was less robust but did see a modest increase in sales last month.
The movement of new home sales is continuing to pace ahead of last year with little change expected on the horizon. Though labor and supplies are still creating challenges for new construction, home builders surveyed remain confident and continue to feed the strong demand for new construction, both in single-family and condominiums.
One of the key market drivers in the Sarasota Real Estate Market is coming from the now labeled “tax refuges” from states such as New York, New Jersey, Illinois and California. Those of us who serve high net worth clientele from these states searching for properties have seen a shift from second homes to more demand for primary residences. We are also seeing a rise in middle-market buyers from those same states who are small business owners and wish to close shop in their hometowns and start fresh in our area.
At the same time demand is increasing, we have also seen growth in available inventory. As price appreciation has slowed this year, would-be sellers who were waiting for more double-digit gains are now motivated to list their properties for sale and get on with their own purchase of a new home. Especially in the price tier over $1 million, we are seeing significant increases in available inventory with single-family listings last month alone growing 13.4% and condominiums 41.1%.
I am very encouraged by both the out-of-area buyers I am working with who are anxious to find something quickly to transition their primary residence, and, also the eager sellers who are entering the market. Though our traditionally slower months are not far off, I believe that the Sarasota Real Estate Market will continue to see healthy activity.
And now for my statistical report on the May Sarasota Real Estate Market activity:
- Total Sarasota Real Estate Market dollar volume of $559.9 million in May increased by $92.4 million or approximately 20% from the same month a year ago, a great month to close out the winter selling season
- Broken down, single-family sales were $394.6 million and condominium sales were $165.3 million for the month.
- The number of properties sold in May was 1,416, 144 more than a year ago. The sales total includes 959 houses and 457 condos. The 2018 monthly average for sold properties in Sarasota was 1,001.
- Florida’s single-family sales increased 9.6% over last year, and condo sales were up 1.6% compared to prior year. Homes sold for in excess of $1 million were 11% higher than May 2018 and condos closed at over $1 million fell 13%.
- U.S. sales fell slightly with single-family sales declining .8% and condos down 3.3%.
- Of the closed sales in Sarasota last month, 66 were for over $1,000,000, 48 were houses and 18 were condominiums.
- In 2018 Sarasota averaged 29 house sales and 17 condo sales per month for over a $1 million sale price, a small portion of our overall sales.
- Listings that went pending in May were 1,244, an increase of 110 transactions from the same month last year, deviating from the nearly static state and national trends. For 2018 the monthly average for pending sales was 1,031.
- Florida’s single-family and condo pending sales were virtually equal to last year.
- U.S. pended sales in May increased slightly, 1.1% compared with a year ago.
- In May, Sarasota’s single-family homes were sold at a median price of $305,305. The 2018 monthly median price for houses sold was $281,662.
- In May, Florida median price for single-family homes was $266,000 a 4.3% increase over last year.
- The national median price for existing homes grew 4.6% to $280,200.
- The condominium median sale price in Sarasota was $238,000 in May. The 2018 monthly median average was $230,989.
- Median price for a Florida condo last month was $194,050, a 2.1% increase over May 2018.
- U.S. median condo price grew to $257,100, a 5.4% increase.
- Sarasota houses sold on average for $411,499 in May, where the 2018 monthly average was $384,110.
- Condominiums sold for an average price in May of $361,732. The condominium monthly average sale price in 2018 was $355,047.
- Currently there is available inventory of 4,874 properties for sale in Sarasota. There were 5,401 at the end of 2018 and 4,401 at the end of 2017. This is a decrease of 455 listings from May.
- Of the available inventory for sale, 682 properties are listed for over $1 million or only 14%. 500 of the active listings over $1,000,000 are houses and 182 are condominiums.
- Sarasota County had 1,188 new listings in May. The local market averaged 1,289 new listings in 2018. Of the new listings the past month 70 properties were listed over $1,000,000.
- Current inventory results in 4.5 months of single-family homes for sale in Sarasota and 5.7 month’s supply of condominiums.
- Florida currently has 4.0 months of single-family inventory and 5.9 month’s supply of condominiums. Inventory of properties selling for over $1 million have increased more than 6% over last year.
- U.S. inventory of all housing types is sitting at 4.3 months of supply, increasing 2.7% in May over prior year.
In today’s ever-fluid real estate market, the value of partnering with a highly experienced, locally as well as globally connected agent/broker, and a skilled negotiator and advocate cannot be understated.
Having served clients in The Sarasota Real Estate Market for more than 37 years and carefully analyzing our business conditions, I have developed essential insight to assist both buyers and sellers in achieving their objectives.
It would be my privilege to work with you, your family and friends in realizing your goals in acquiring or selling your property.
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